The Employee Retention Credit (ERC) was enacted in March 2020, but had limited appeal because businesses were ineligible to claim it if they obtained a PPP loan. That changed in December 2020 when the ERC eligibility ban was lifted, and legislative changes in March 2021 have also expanded the eligibility and benefits to businesses. Since then, ERC claims have exploded, with some estimates showing that nearly nine million businesses that received PPP funding could be eligible to claim the ERC.

Withum has been working with companies around the country to calculate and claim the ERC. Businesses who qualify could be eligible for cash refunds up to $5,000 per employee for 2020 and up to $7,000 per employee for each quarter which the business qualifies in 2021 (through Q3 2021 for most businesses). Eligibility rules, in particular with corporate groups or closely held businesses can be complex, as can the calculations of the maximum refunds amount with the interactions of other governmental programs such as the Paycheck Protection Program and FFCRA Sick Pay credits.

For additional information on eligibility, see the below flow charts, which serve as a great starting point for both the 2020 and 2021 ERC programs.

Why Choose Withum for Your ERC Process

At Withum, we understand the complexities of the program and have a dedicated team of experts assisting our clients with the ERC process. From eligibility, to calculations, to filing for the refunds via amended tax returns, Withum has the expertise to assist, and we are here to help. Contact us for more information.

Contact Us

Contact our dedicated team of experts to assist and address any ERC challenges.

Leadership

Daniel Mayo

Principal

Red Bank, NJ

Louis Young

Advisory

Jessica L. Hollobaugh

Partner

Princeton, NJ - Corporate Headquarters

Jeremias Ramos

New York, NY